Veraz Networks, the San Jose, Ca. provider of VoIP equipment for telecom carriers, opened at $8 a share, below its target of $10-$12, and subsequently started trading even lower. It was at $7.90 around midday EST, on its first day of IPO trading.
Veraz raised $72 million by offering 9 million shares, and is the latest company going public while losing money.
Its revenue is growing quickly, but still reported a 2006 net loss of $14 million on revenue of $100 million, compared to a loss of $14.3 million on revenue of $76 million in the year-ago period.
(Story originally published 4/4)